Data Center Economics

AN ALSBRIDGE COMPANY
“Considering the availability of bandwidth and resolution of performance issues, it is clearly established that the
consolidation of Data Centers has a signficant business benefit to organizations,” said Wipro’s Rajan.
More than half of survey participants (56.2%) said that they owned fewer than half of their data centers. But more than
40 percent (43.8%) own more than half of all their data centers.
Certain industries tend to keep their data centers in-house. For instance, financial services firms and telecommunications
operators typically own their own data centers. However, many other organizations tend to have hosted data centers.
DO BUSINESS BETTER
The trend over the past several years, according to Rajan Sampath, is for organizations to host data centers instead of
owning them, but this varies from vertical to vertical and depends on the size and reach of the organization. “A large and
established banking or telco enterprise, for instance, would be hesitant to give up their data center ownership, while a
smaller retail enterprise might be more likely to go with a hosted data center option,” Rajan says.
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FINDING #3: MOST ORGANIZATIONS DO NOT KNOW THE DETAILED COST
BREAKDOWN OF EACH DATA CENTER.
Fewer than a third of participants (31.3%) in the Wipro and Outsourcing Center survey said that their current data center
costs are worrisome for their business. Nearly half (43.8%) of group participants said that data center costs were not a
concern for them.
A Peep into Data Center Economics 7
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